Hello Aspirants. Welcome to Online English Quiz in AffairsCloud.com. Here we are creating Best question samples from Reading Comprehension, which is common for all the IBPS/SBI/RRB/SSC-CGL/LIC ADO/LDC/Railways and other competitive exams. We have included Some questions that are repeatedly asked in bank exams !!!
Directions (1-10): Read the passage carefully and answer the questions given below it. Certain words/phrases have been given in bold to help you locate them while answering some of the questions.
The RBI recently put an end to several unfair practices in retail banking through a series of customer friendly circulars to commercial banks and credit card companies. Result: consumer goods companies, retail chains and banks which were having a free run, alluring and exploiting gullible customers will have to be more transparent and rationale while doing business. The RBI comes just weeks before the onset of the festival season, and much to the chagrin of retail players. The biggest move, of course, was the ban on zero per cent interest EMI’s (equated monthly installments). Retail chains, companies and banks had a field day hawking smart phones. LED TV, air-conditioners and microwave ovens. Since the very concept of zero per cent interest is non-existent and fair practices demands that the processing charge and interest charged should be kept uniform product or segment wise, such schemes only serve the purpose of alluring and exploiting the vulnerable customers. The biggest loss for a customer would be forgoing the cash discount on a product that a customer could have otherwise got if he had brought it on full payment. This is on top of the transaction or processing fee under the zero per cent scheme and consequently more money through EMIs. In the second major measure, the RBI said banks not complying with the requirements should compensate the loss incurred by the card holder using card at POS terminals not adhering to the mandated security standards. The law enforcement agencies recently found fraudsters cloned the cards to withdraw money and go on a shopping binge abroad. There were several instances of illegal card –skimming leading to money theft from other bank accounts due to problems in the authentication processes in the jurisdiction where the money got withdrawn. The RBI says the issuing bank should claim the amount paid by it to the customer from the respective bank which have acquired the POS transaction in question .The acquiring banks have to pay the amount paid by the issuing bank without demur within three working days of the issuing bank raising the claim, failing which the RBI would compensate the issuing bank by debiting the account of the acquiring bank maintained with the bank. The RBI had earlier this year asked banks to bar international usage of debit and credit cards unless customers specifically ask for this feature. Banks have also been asked to enable blocking of cards through a text message request. ATM and credit card customers have complained that banks were not restoring funds debited to their accounts by cloned cards from distant places. Customers insist that they have not parted with the cards and hence cannot be liable for transactions which the banks hold them responsible for. Customers demand that in ‘card percent scenario’ such distant transactions if not authorized by the customer should immediately by reversed. In another measure, the RBI directed banks to terminate relationship with merchant establishments which levy a fee as a percentage of the transaction value as charges on debit cards of customers saying such fees are not “permissible and justifiable”. There are instance where merchant establishments levy a fee as a percentage of the transaction value as charges on customers who are making payments for purchase of goods and services through debit cards. Such fees are not justifiable and are not permissible as per the bilateral agreement between the acquiring bank and the merchants and therefore calls for termination of the relationship of the bank with such establishments. Some outlets, especially fuel stations, are still charging a fee from customers who use debit cards. According to the Damodaran panel report, the percentage of interchange/ merchant fee charged by the card services providers for both debit and credit card being the same, a merchant is indifferent to a create/ debit card. Card data indicates that more than 80 per cent of the cards are debit cards and the customers feel that debit card is akin to cash as it directly debits their accounts and does not confer any advantage by way of a credit facility. Customer feedback indicated that if the merchant service fee is made minimal for a debit card, it might encourage its acceptance by the merchant establishment and thereby encourage electronic payments. Card service providers and banks should therefore follow a differential merchant fee policy in favour of debit cards which will over a period of time, reduce the dependence on cash for payments.
1).Why has the RBI put a ban the schemes claiming zero per cent interest on EMI’s?
1) The customers had not shown any interest in such schemes.
2) The consumers buying power had risen considerably and was not healthy for the economy.
3) The banks were incurring losses owing to such schemes.
4) The facility of zero percent interest does not exist.
5) Not clearly mentioned in the passage
2).What did the customers demand whenever their money was fraudulently withdrawn abroad by cloning their cards?
1) They demanded that such transactions should be reversed unless authorized by the customer.
2) They demanded that double the amount should be credited to their account immediately.
3) They demanded that the fraud be arrested and taken action against.
4) They demanded that the cloned card be immediately retrieved and destroyed in front of the customer
5) They silently agreed to bear the loss.
3).Which of the following is TRUE with regard to Damodaran panel report?
(A) A small percentage of customers preferred debit cards to credit cards.
(B) The customers considered debit cards similar to cash.
(C) The customers used debit cards only for withdrawal of money from their accounts.
1) Only A
2) Only B
3) Only A and C
4) Only B and C
5) All of the above
4).Which of the following has been suggested to popularize the payments be done using debit cards?
1) The customers should be encouraged to use cash for making huge payments as they would not have to pay merchant service fee.
2) Merchant service fee should be kept as low as possible.
3) Card service providers and banks should mutually from a policy which favours usage of debit cards for making payments.
4) Only a and c
5) Only b and c
5).What has been the impact of RBI’s move, on retail players in the market?
1) They have agreed to lend full support to ensure implementation of its directions.
2) They have not welcomed the RBI’s move
3) They have come up with different schemes to evade getting caught by the new rules.
4) They have decided to change markets so that the changes made do not impact them much
5) All of the above
6). Which of the following is FALSE, in the context of the passage?
1) In many cases of fraud, customers insist that they cannot be held responsible for unauthorized transactions as they did not part with their cards.
2) The RBI has issued customer-friendly circulars in order the protect the rights of the customers.
3) RBI has asked banks to terminate relationship with merchant establishments which levy unjustifiable fee as a percentage of the transaction value.
4) The RBI has directed banks to bar international usage of debit and credit cards unless specifically asked by the customer.
5) All of the above are TRUE
Directions (7-8): Choose the word most SIMILAR in meaning to the word printed in bold, as used in the passage.
7).Gullible
1) Knowledgeable
2) Garrulous
3) Fussy
4) Naive
5) Reprimanding
8). Akin
1) Corresponding
2) Focused
3) Similar
4) Related
5) Derived
Directions (9-10): Choose the world which is most nearly the OPPOSITE in meaning as the word printed in bold as used in the passage.
9).Terminate
1) Expire
2) Permit
3) Reverberate
4) Start
5) prohibit
10).Forgoing
1) Passing
2) Surrendering
3) Changing
4) Enhancing
5) Availing
